Budgeting: Create Your Budget & Automate

The “net” pay indicated on your paycheck is the money you receive after taxes and any other fees are taken out.

• True

• False

When setting up your budget, you should always take variable expenses into account before fixed expenses.

• True

• False

Using your debit card for the majority of your purchases is a good way to keep track of expenses.

• True

• False

Banks and credit unions offer financial services that are quite different from each other.

• True

• False

Opting to receive your salary through direct deposit instead of a paper check can save you both time and money.

• True

• False

Which of the following statements is/are true with respect to third-party online money management services? More than one answer may be correct.

• a) These services allow users to see multiple accounts on one screen or dashboard.

• b) These services are mainly for high-income individuals and business owners.

• c) These services may display advertisements for other financial services.

• d) These services are risky since information can be compromised.

Zoey wants to start tracking her expenses in order to better manage her finances. Which of the following are ways she can track her expenditures?

• a) She can use a cell phone or online app such as Mint to track her expenses.

• b) She can use cash to pay for everything and monitor the amount she spends.

• c) ) She can use a debit card or credit card to pay for everything, which can help her monitor her expenditures.

• d) All of the above

Jett is setting up a budget. His net monthly pay is $4,700 and he just paid off his last debt. What is the minimum amount he should set aside each month as long-term savings goal?

• a) Since he has no debt, he can save any amount.

• b) 25%

• c) 10%

• d) Since he has no debt, he does not need long-term savings.

Brad’s annual car registration costs $390. What is the minimum amount of money he should save each month to cover this fixed expense?

• a) $19.50

• b) $30

• c) $32.50

• d) $39

Brad has set up automatic payments for his fixed monthly expenses and automatic transfers to his savings account. However, he has been charged overdraft fees the past few months. All of the following except _______ are possible reasons for the overdraft.

• a) Brad could have been living above his means.

• b) Brad has been living below his means.

• c) Brad could have purchased items that were not in his budget.

• d) Brad could have miscalculated his total automatic transfers and payments